Part 2: Expense Measures (continued)

Industry

Acacia Park Industrial Estate Armidale — contribution reversal

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑0.2

‑

‑

‑

‑

The Government will achieve savings of $220,000 by not proceeding with the Acacia Park Industrial Estate Armidale contribution towards enhanced communications capacity measure announced in the 2013‑14 Budget.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Australia‑China Science and Research Fund — continuation

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

2.0

2.5

2.8

2.6

The Government will provide $10.0 million over four years to continue the Australia‑China Science and Research Fund which supports collaboration between Australian and Chinese researchers.

The measure includes:

$7.0 million over four years for five new Joint Research Centres focused on the application and commercialisation of research outcomes in oil and gas, mining, and mining services, medical research and advanced manufacturing;

$0.6 million over two years for the Australia‑China Science Academies Symposium series; and

$0.8 million over four years for the Australia‑China Young Researchers Exchange Programme.

The remaining funding is for the Department of Industry to administer the Australia‑China Science and Research Fund.

The Government will achieve savings of $914.6 million over four years by ceasing Tools For Your Trade payments from 1 July 2014. Financial assistance to help apprentices will instead be provided through the Trade Support LoansProgramme.

See also the related expense measure titled Trade Support Loans — establishment.

The Government will provide an additional $31.6 million over four years to the Australian Nuclear Science and Technology Organisation towards the costs of operating the Open Pool Australian Lightwater (OPAL) nuclear research reactor at full capacity. This includes funding to meet the increased costs of nuclear fuel and electricity.

OPAL uses low enriched uranium fuel to produce neutrons for nuclear medicine production, as well as for environmental, medical and material research.

Australian Nuclear Science and Technology Organisation — permanent disposal of used nuclear fuel

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Australian Nuclear Science and Technology Organisation

‑

2.7

2.9

18.8

1.4

The Government will provide $45.0 million over five years (including $19.1 million in 2018‑19) to send two shipments of spent nuclear fuel assemblies from the Open Pool Australian Lightwater (OPAL) nuclear research reactor to the United States for processing and permanent storage in accordance with the United States Department of Energy Foreign Research Reactor Spent Nuclear Fuel Acceptance Program. Disposal of the spent fuel assemblies will create additional capacity for the temporary storage of spent fuel in the OPAL service pool, which is essential for the continued operation of the reactor.

Australian Renewable Energy Agency — cessation

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

6.0

5.4

4.3

2.8

Australian Renewable Energy Agency

‑

‑

‑

‑

‑357.0

Total — Expense

‑

6.0

5.4

4.3

‑354.2

The Government will achieve savings of $1.3 billion over five years from 2017‑18 (including $223.3 million in 2018‑19, $455.9 million in 2019‑20, $125.4 million in 2020‑21 and $131.1 million in 2021‑22) by abolishing the Australian Renewable Energy Agency and repealing the Australian Renewable Energy Agency Act 2011. Funding of $1.0 billion over eight years will remain available to support existing priority projects.

This measure includes funding of $24.1 million over eight years from 2014‑15 for the Department of Industry to manage legacy functions.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Automotive Assistance — reduced funding

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑100.0

‑100.0

‑

‑

‑118.0

The Government will achieve savings of $618.5 million over eight years from 2013‑14 (including $176.7 million in 2018‑19, $95.2 million in 2019‑20 and $28.6 million in 2020‑21) by terminating the Automotive Transformation Scheme on 1 January 2018, to reflect announcements by vehicle manufacturers that they will cease vehicle manufacturing in Australia by the end of 2017.

The Government will also not proceed with the Supporting automotive sector jobs measure announced in the Pre‑Election Economic and Fiscal Outlook 2013. Funding for this measure was included as a 'decision taken but not yet announced' in the Mid‑Year Economic and Fiscal Outlook 2013‑14.

Funding of approximately $1.0 billion over five years from 2013‑14 will remain available under the Automotive Transformation Scheme to support vehicle manufacturers and supply chain companies.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Carbon Capture and Storage Flagships — reduced funding

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

‑

‑

‑

‑162.9

The Government will achieve savings of $459.3 million over three years from 2017‑18 (including $263.3 million in 2018‑19 and $33.1 million in 2019‑20) from the Carbon Capture and Storage FlagshipsProgramme. Funding of $191.7 million over seven years will remain available to support existing projects.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

The Government will provide an additional $65.7 million over four years to the Commonwealth Scientific and Industrial Research Organisation (CSIRO) for the Marine National Facility to operate the new research vessel, the RV Investigator. The CSIRO will contribute a further $21.2 million over four years from within its existing resources.

The RV Investigator replaces the RV Southern Surveyor which was decommissioned in December 2013.

Entrepreneurs' Infrastructure Programme — establishment

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑53.7

‑32.8

‑131.5

‑142.1

‑149.2

Related capital ($m)

Department of Industry

‑

9.2

6.5

4.3

3.3

The Government will provide $484.2 million over five years from 2013‑14 to establish the Entrepreneurs' Infrastructure Programme to implement its new approach to industry policy. The programme will focus on supporting the commercialisation of good ideas, job creation and lifting the capability of small business, the provision of market and industry information, and the facilitation of access to business management advice and skills from experienced private sector providers and researchers.

The programme will be delivered through a single agency model by the Department of Industry to achieve efficiencies and reduce red tape.

The Government will also achieve savings of $845.6 million over five years by ceasing the following programmes from 1 January 2015:

Australian Industry Participation;

Commercialisation Australia;

Enterprise Solutions;

Innovation Investment Fund;

Industry Innovation Councils;

Enterprise Connect;

Industry Innovation Precincts; and

Textile, Clothing and Footwear Small Business and Building Innovative Capability.

The Government will achieve further savings of $124.7 million over five years by reducing funding for the Clean Technology (Investment and Innovation) programmes and Cooperative Research Centres.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Ethanol Production Grants Programme — cessation

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

‑

‑122.1

‑122.1

‑122.1

Related revenue ($m)

Australian Taxation Office

‑

‑

‑122.1

‑114.1

‑106.1

The Government will achieve net savings of $120.0 million over six years from 2015‑16 (including $24.0 million in 2018‑19, $32.0 million in 2019‑20 and $40.0 million in 2020‑21) by ceasing the Ethanol Production Grants Programme on 30 June 2015. The fuel excise on domestically produced ethanol will be reduced to zero from 1 July 2015 and then increased by 2.5 cents per litre per year for five years from 1 July 2016 until it reaches 12.5 cents per litre, which represents 50 per cent of the energy content equivalent rate. The excise equivalent customs duty for ethanol will be retained at 38.143 cents per litre.

See also the related expense measure titled TaxationTreatment of Biodiesel — modification in the Treasury Portfolio.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

General Motors Holden — next generation vehicles — cessation

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑36.0

‑50.7

‑112.7

‑15.6

‑

The Government will achieve savings of $215.0 million over four years from 2013‑14 by not proceeding with funding for the General Motors Holden next generation vehicles project following Holden's decision not to proceed with the project and to cease vehicle manufacturing in Australia by the end of 2017.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Growth Fund — establishment

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑4.7

10.4

20.6

27.9

14.1

Department of Employment

‑

‑

‑

3.0

12.0

Total — Expense

‑4.7

10.4

20.6

30.9

26.1

The Government will provide $100.6 million over six years from 2013‑14 (including $0.5 million in 2018‑19) to establish a $155 million Growth Fund to support new jobs, investment and economic growth in South Australia and Victoria following announcements by vehicle manufacturers that they will cease vehicle manufacturing in Australia by the end of 2017. The remaining funding will be provided by the Victorian and South Australian governments, Holden and Toyota. The Growth Fund includes the following components and Commonwealth contributions:

$35.8 million over five years to establish the Next Generation Manufacturing Investment Programme to support investment in high‑value manufacturing in Victoria and South Australia;

$29.8 million over five years to establish the Regional Infrastructure Programme to encourage investment in capital projects outside of manufacturing to support new business opportunities;

$20.0 million over five years to establish the Automotive Diversification Programme to assist component suppliers to transition to new products and markets, including redirecting existing uncommitted funding of $16.9 million from the Automotive New Markets Initiative;

$15.0 million over two years from 2016‑17 to extend the Automotive Industry Structural Adjustment Programme to assist automotive workers made redundant to find employment; and

the Skills and Training Programme, funded by Holden and Toyota, to transition automotive workers into new jobs through skills recognition and training.

Further information can be found in the joint press release of 30 April 2014 issued by the Prime Minister and the Minister for Industry.

Industry grant programmes — reduced funding

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑2.0

‑0.9

‑

‑

‑

The Government will achieve savings of $3.0 million over two years by returning to the Budget uncommitted funding under various grant programmes in the Industry portfolio.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Industry Skills Fund — establishment

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Employment

‑

2.9

4.4

2.8

1.5

Department of Human Services

..

‑0.1

0.4

‑0.1

‑0.1

Department of the Treasury

7.9

‑26.7

‑

‑

‑

Department of Industry

‑64.6

‑195.3

‑113.8

‑85.0

‑65.1

Total — Expense

‑56.6

‑219.2

‑109.0

‑82.4

‑63.7

The Government will provide $476.0 million over four years to establish the Industry Skills Fund (ISF) from 1 January 2015 to support the training needs of small to medium enterprises which cannot be readily met by the national training system. Industries targeted will include: health and biomedical products; mining, oil and gas equipment technology and services; and advanced manufacturing, including defence and aerospace.

The ISF is expected to deliver 121,500 training places (providing participants with qualifications, skill sets and recognition of both prior learning and current competencies) and 74,300 support services (including mentoring and foundation skills) over four years. Businesses will be required to make co‑contributions towards the cost of training on a sliding scale depending on the size of the enterprise.

The Government will also achieve savings of $1.0 billion over five years from 2013‑14 by ceasing the following ten skills and training programmes from 1 January 2015:

National Partnership Agreement on Training Places for Single Parents;

Accelerated Australian ApprenticeshipsProgramme;

Australian Apprenticeships MentoringProgramme;

National Workforce Development Fund;

Workplace English Language and LiteracyProgramme;

Alternative Pathways Programme;

Apprenticeship to Business OwnerProgramme;

Productive Ageing through Community Education;

Australian Apprenticeships Access Programme; and

Step Into SkillsProgramme (including additional savings of $0.8 million in 2013‑14 by not commencing the programme as scheduled).

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Manufacturing Transition Grants Programme — establishment

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

2.6

34.3

13.1

‑

The Government will provide $50.0 million over three years to establish the Manufacturing Transition Grants Programme to assist Australian manufacturers to transition to higher value manufacturing activities and/or niche activities which result in a new end product and improve a firm's competitiveness.

The programme will provide grants of $5.0 million to $10.0 million to support activities including: alterations and/or extensions to premises to facilitate a new production process; the acquisition of machinery and equipment required for the new production process; and specialised training in the use and maintenance of the new machinery and equipment.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy to Boost the Competitiveness of Australian Manufacturing.

The Government will provide $0.3 million in 2014‑15 to commission an independent evaluation and review of the 'one‑stop‑shop' for offshore petroleum project environmental approvals to finalise the Government's response to the Report of the Montara Commission of Inquiry.

Under the one‑stop‑shop arrangements, the National Offshore Petroleum Safety and Environmental Management Authority is the sole environmental assessor for offshore petroleum and greenhouse gas activities in Commonwealth waters. The review will consider the effectiveness of the new arrangements in achieving their objectives.

The cost of this measure will be met from within the existing resources of the Department of Industry.

National Low Emissions Coal Initiative — reduced funding

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑7.0

‑9.8

‑

‑

‑

The Government will achieve savings of $16.8 million over two years from 2013‑14 from the National Low Emissions Coal Initiative. Funding of $96.6 million over four years will remain available to support the development and deployment of technologies that aim to reduce emissions from coal use.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

National Radioactive Waste Management — second stage business case

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

6.8

7.1

8.8

‑

The Government will provide $22.6 million over three years from 2014‑15 to develop detailed design options for a national facility to address Australia's future radioactive waste management requirements as set out in the National Radioactive Waste Management Act 2012. The measure includes funding to conduct further site characterisation studies, continue the Regional Consultative Committee, establish a Technical Advisory Group and develop a second stage business case in accordance with the Two Stage Approval Process for Australian Government Construction Projects.

Oilcode dispute resolution services — extension

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

‑

‑

‑

‑

The Government will provide $66,000 in 2014‑15 to extend the provision of dispute resolution services for the Oilcode until 30 June 2015. The one year extension will allow for other options to be investigated for the provision of these services.

The cost of this measure will be met from within the existing resources of the Department of Industry.

Plantation Manufacturing Innovation and Investment Fund — cessation

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑5.6

‑4.9

‑4.9

‑

‑

The Government will achieve savings of $15.5 million over three years from 2013‑14 by ceasing the Plantation Manufacturing Innovation and Investment Fund.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Science and Research Agencies — reduced funding

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Australian Institute of Marine Science

‑

‑1.8

‑1.9

‑2.1

‑2.0

Australian Nuclear Science and Technology Organisation

‑

‑6.6

‑6.8

‑7.1

‑7.0

Commonwealth Scientific and Industrial Research Organisation

‑

‑26.4

‑27.5

‑28.9

‑28.6

Total — Expense

‑

‑34.8

‑36.3

‑38.1

‑37.6

The Government will achieve savings of $146.8 million over four years by reducing research funding for the Commonwealth Scientific and Industrial Research Organisation by $111.4 million, the Australian Nuclear Science and Technology Organisation by $27.6 million and the Australian Institute of Marine Science by $7.8 million.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Science for Australia's Future — continuation

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

7.0

7.0

7.0

7.0

The Government will provide $28.0 million over four years from 2014‑15 for the following activities as part of a national strategy for science engagement:

$5.5 million for the Prime Minister's Prizes for Science;

$13.4 million for National Science Week and the Strategic Science and Communication Programme; and

$9.1 million for the Questacon Smart Skills National Technology Learning Programme and Equity of Access Programme, which targets disadvantaged, regional and minority communities.

The Government will achieve savings of $1.6 million over five years by amending the governance arrangements for the Unique Student Identifier (USI). Instead of establishing a separate authority to administer the USI, the Government will appoint a statutory office holder who will be supported within the Department of Industry.

Savings from this measure will be returned to the National Training System Commonwealth Own Purpose ExpenditureProgramme.

Tasmanian Major Projects Approval Agency — establishment

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

‑

0.9

0.9

0.9

‑

The Government will provide $2.7 million over three years from 2014‑15 to establish the Tasmanian Major Projects Approval Agency in Launceston. The agency will coordinate the regulatory approvals process for current and new major capital projects in Tasmania and will provide a single point of entry for both the Commonwealth and state regulatory systems. The agency will be part of the Department of Industry.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Economic Growth Plan for Tasmania.

The Government will achieve savings of $1.5 million in 2014‑15 by capping the employment assistance element of the Textile, Clothing and Footwear Structural Adjustment Programme at $1.0 million in 2014‑15 to reflect the current level of demand.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Trade Support Loans — establishment

Expense ($m)

2013-14

2014-15

2015-16

2016-17

2017-18

Department of Industry

2.0

47.8

127.1

141.0

155.1

Australian Taxation Office

1.2

2.2

0.7

0.6

0.5

Total — Expense

3.2

49.9

127.8

141.6

155.7

Related revenue ($m)

Department of Industry

‑

‑

2.7

12.7

27.0

Related capital ($m)

Australian Taxation Office

0.4

2.8

‑

‑

‑

The Government will provide $439.0 million over five years from 2013‑14 to establish the Trade Support Loans Programme, which will provide apprentices with financial assistance of up to $20,000 over a four year apprenticeship.

Trade Support Loans will be provided at concessional interest rates and capped at $8,000 in the first year of the apprenticeship, $6,000 in the second, $4,000 in the third and $2,000 in the fourth. They will be available to apprentices undertaking a Certificate III or IV qualification that leads to an occupation on the National Skills Needs List. Apprentices will be required to commence repaying the loans when their income exceeds a minimum repayment threshold ($53,345 in 2014‑15) consistent with arrangements applying to university students under the Higher Education Loan Programme (HELP). Apprentices who successfully complete their training will receive a 20 per cent discount on the amount to be repaid.

The measure includes $5.8 million for Australian Apprenticeship Centres to administer the loan payments in 2014‑15, pending consideration of a new Australian Apprenticeship Support Services contract, and $8.5 million over four years (including $3.2 million in capital funding) for the Australian Taxation Office to administer loan repayments.

Further consideration will be undertaken after the 2014‑15 Budget on the scope for the financial services sector to administer Trade Support Loans payments from 2015‑16.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Better Support of Australian Apprentices.